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Exam IFC Topic 1 Question 157 Discussion

Actual exam question for CISI's IFC exam
Question #: 157
Topic #: 1
Catarina is a Dealing Representative for Ethical Financial which represents 20 different mutual fund families.
Darlene is a fund manager from one of those mutual fund families and wants to send a gift card to Catarina as a symbol of appreciation. Ethical Financial's policies and procedures manual (PPM) require that Catarina decline the gift.
What method of addressing conflict of interest is being used by Ethical Financial?

Suggested Answer: C Vote an answer

Avoidance is a method of addressing conflict of interest by preventing it from occurring in the first place.
Ethical Financial's policies and procedures manual (PPM) require that Catarina decline the gift from Darlene, which is a potential source of conflict of interest. By doing so, Catarina avoids any appearance of favouritism or bias towards Darlene's mutual fund family. (Canadian Investment Funds Course, Chapter 2, Section 2.3)
:
Canadian Investment Funds Course, Chapter 2, Section 2.3: Conflicts of Interest IFSE Institute: Conflicts of Interest1

by Hilary at Jul 31, 2025, 10:30 PM

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